Paul Taylor

Greece and EU close ranks, say no bailout

Paul Taylor
Jan 29, 2010 16:28 UTC

DAVOS, Switzerland (Reuters) – Greek and European Union officials closed ranks on Friday, insisting there was no chance of a Greek default or an EU bailout and that Athens would do whatever it takes to cut its burgeoning deficit.

“Solidarity is possible, will exist. A bailout is not possible and will not exist,” EU Monetary Affairs Commissioner Joaquin Almunia told Reuters Insider TV.

Greek Prime Minister George Papandreou, also at the World Economic Forum in Davos, promised to do all that was required to cut the deficit and restoring confidence.

“Greece is in a situation where we need to take very strong measures and structural changes in our country,” he said. “We’re determined to implement the program.”

The euro zone has pledged to cut its budget deficit this year to 8.7 percent of gross domestic product from over 12 percent and return to the EU’s 3 percent cap by 2012.

Business pleads for 2010 trade deal amid skepticism

Paul Taylor
Jan 28, 2010 13:04 UTC

DAVOS, Switzerland (Reuters) – Global business leaders appealed to governments on Thursday to make good on their commitment to conclude stalled trade liberalization talks this year and boost a world economic recovery.

But trade negotiators were skeptical of the political will to overcome disputes between the United States and key emerging nations that thwarted a deal in 2008, before the financial crisis plunged much of the world into recession.

U.S. mid-term congressional elections in November and a Brazilian presidential election are among political hurdles.